Timeshare Legals Limited Shut Down by UK Government

Readers of our website will be aware of warnings we give to the public regarding dealing with cold calling unregulated claims companies regarding timeshare exits and/or compensation claims. 

A number of these companies have been closed by authorities and there is breaking news regarding yet another company, Timeshare Legals Limited (“Timeshare Legals”).  

Timeshare Legals is an unregulated company registered in England and Wales with company number 11602454.  It was incorporated on 3rd October 2018 and on the face of its last filed accounts made up to 31st October 2020 has little by way of cash or other assets.  

Timeshare Legals Wound Up in the Public Interest 

It would appear that there has been a significant issue with this business which resulted in the Secretary of State for Business and Trade issuing a winding up petition to wind Timeshare Legals up, in the public interest.  Proceedings were commenced against Timeshare Legals on 19th February 2024 (Case No CR-2024-001013).  

The Secretary of State’s petition was heard by the High Court at a hearing on 16th April 2024.  

Companies House has now published the outcome of that hearing which can be viewed by clicking here. 

The Companies House statement makes interesting reading: 

  1. Timeshare Legals was in business purporting to assist members of the public in terminating their timeshares and claiming compensation.  
  2. Significant upfront fees were charged.
  3. Many of the claims turned out not to be valid or were not progressed because Timeshare Legals failed to pay appointed lawyers and/or claims management companies.  
  4. The petition was presented following an investigation by the Insolvency Service which identified a suspicious transfer of funds to a related company in Spain with the same name (Timeshare Legals S.L).

Mark George, Chief Investigator of the Insolvency Service is quoted as follows: 

Timeshare Legals deceived hundreds of people who wanted exit or claim for mis-sold timeshare agreements into paying upfront fees for what were ultimately futile cases.  

Their obvious record-keeping deficiencies and failure to pay funds over to appointed lawyers has clearly hindered progress and damaged clients’ prospects of ever recovering money.  

The company provided very limited cooperation with our investigation, failing to produce any trading or financial records, resulting in investigators being unable to establish the legitimacy of or reasons for the transfer of more than £900,000 to unknown accounts.  We will not hesitate to act in the public interest to wind up rogue businesses causing individuals financial loss and harm.

Reading the statement by Companies House it is noted that there are at least 440 timeshare claimants who have been impacted and that more than £3.75m has passed through Timeshare Legals’ bank accounts.  The statement goes on to say that the Insolvency Service has been unable to identify where those funds have been routed to “due to a lack of trading and financial records being provided”.

There is a reference to an unnamed Spanish law firm and two other claims management companies.  The Official Receiver has been appointed as liquidator of the company.  

In our experience, an Insolvency Practitioner is likely to be appointed to pursue recovery of money on behalf of creditors.  

What is a Public Interest Winding Up Petition?

The Secretary of State has powers pursuant to Section 124(A) of The Insolvency Act 1986 to file with the Court a winding up petition on the grounds that it is in the public interest that the subject company should be wound up.

The ultimate test as to whether the Court feels the company should be wound up is whether or not it is “just and equitable” to do so.  This involves the Secretary of State presenting evidence following an investigation by the Insolvency Service investigations into the company’s conduct.  Usually, such petitions are reserved for what is often described as “miscreant” companies, in cases involving damage or harm to members of the public. 

It is significant in the present case that Timeshare Legals and its director have not cooperated in the investigations nor provided any evidence to counter the application that had been made. 

How Can Athena Law Help?

If you have paid Timeshare Legals by credit card (even if it is only a deposit) you may be able to recover funds from your credit card supplier pursuant to Section 75 of the Consumer Credit Act 1974.  

You may be able to undertake this yourself, but if you do not feel comfortable acting for yourself or believe there are any particular complications, we can assist you on an entirely no–win, no–fee basis. 

You may also find yourself embroiled in litigation in Spain which is now doomed to fail either because the Courts in Spain do not have jurisdiction to deal with many timeshare complaints and/or claims or your Spanish lawyers have simply not been paid by Timeshare Legals.

Alternatively, you may still be receiving maintenance fee demands and may need assistance in terminating your timeshare contract and/or taking advice as to your potential long-term liabilities in respect of the same. 

Many timeshare developers offer exit policies, and we always advise our clients to first speak to developers and/or managing agents to see if it is possible to terminate a timeshare contract voluntarily and amicably without incurring legal fees. If the developer does not offer an exit policy on reasonable terms, then we can potentially assist in terminating those contracts. 

We are happy to provide an initial review for potential compensation/termination services on a no-commitment basis.  

In the event you have been a victim of Timeshare Legals or, indeed any other unregulated claim/exit company, please do not hesitate to contact us on 0161 839 8847 or via our contact form. 

If you have found this article interesting and would like to learn more about how Athena Law can help you please feel free to contact the writer, Stephen Boyd, at stephen.boyd@athlaw.co.uk.

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Stephen Boyd - Timeshare Lawyer

Stephen Boyd, Partner